The Everyone Must Know Series

How You Should Manage Your CPF At Different Stages Of Your Life

Managing and growing your Central Provident Fund (CPF) savings effectively requires a strategic approach tailored to different life stages. Each stage brings unique opportunities and challenges for maximizing your CPF savings.

Here’s how to manage and grow your CPF at various ages:

In Your 20s: Building the Foundation

  • Start Early: The power of compounding interest means the earlier you start saving, the more you’ll have by retirement.
  • Focus on Regular Contributions: Ensure consistent employment to benefit from regular CPF contributions from both you and your employer.
  • Educate Yourself: Understand how CPF works, including the interest rates for Ordinary Account (OA), Special Account (SA), and MediSave Account (MA).

In Your 30s: Enhancing Your Savings

  • Top-Up Your SA: Consider making voluntary top-ups to your SA for higher interest earnings (up to 5% p.a.) and tax relief.
  • Review Your CPF Investment Scheme (CPFIS) Options: If you’re knowledgeable about investments, consider using CPFIS to invest your OA and SA savings, but be mindful of the risks and the fact that CPF already offers relatively high guaranteed interest rates.
  • Plan for Housing: If purchasing a home, use your CPF OA wisely. Remember, funds used for housing will reduce your retirement savings.

In Your 40s: Mid-Life Acceleration

  • Maximize Voluntary Contributions: Increase your CPF savings by making voluntary contributions to your CPF, focusing on the SA for its higher interest rate.
  • Evaluate CPF LIFE: Start planning for retirement by understanding CPF LIFE plans and how they will provide you with a monthly payout for life.
  • Healthcare Planning: Ensure your MediSave Account (MA) has sufficient savings for future healthcare needs, considering MediSave’s higher interest rate and its importance for medical expenses.

In Your 50s: Preparing for Retirement

  • Top-Up Your Retirement Account (RA): When you reach 55, a RA is created. Top up your RA to meet the Full Retirement Sum (FRS) or Enhanced Retirement Sum (ERS) for higher monthly payouts under CPF LIFE.
  • Opt for a Suitable CPF LIFE Plan: Choose a CPF LIFE plan that suits your financial needs and lifestyle expectations.
  • Reassess Your Investment Strategy: If you’ve invested your CPF savings, consider shifting towards more conservative options to preserve capital as you approach retirement.

In Your 60s and Beyond: Retirement & Drawdown

  • Commence CPF LIFE Payouts: You can start receiving your CPF LIFE payouts from your payout eligibility age. Decide on the best timing based on your financial situation.
  • Manage Withdrawals Wisely: You can now make withdrawals from your CPF accounts. Plan these carefully to ensure you have sufficient funds for your retirement years.
  • Stay Informed on Healthcare Options: Use your MediSave for medical expenses and stay informed about the MediShield Life and other senior citizen healthcare schemes.

Learn More & Get Personalized Recommendations!

Everyone has different financial goals and retirement plans. Hence it is difficult to give specific recommendations that makes sense for every individual.  All of us need our personalized financial plan.

Here at MoneyGrowth.SG, we believe that everyone should have free access to good financial planning advice.  Therefore we have put together a community of trusted experts in financial planning.

All our community experts are:

  • Pre-qualified and vetted by the MoneyGrowth.SG team.
  • Fully licensed with Monetary Authority of Singapore (MAS).
  • Bound by the rules of conduct set by MoneyGrowth.SG. This means no high-pressure sales tactics as this violates the spirit of the MoneyGrowth community. Please report any community expert that does so.
Here is what you can expect when you meet up with one of our community experts:


Learn how to manage your CPF savings wisely based on your financial and life goals.


Learn how to maximize your CPF savings for retirement.


Learn how to meet your financial goals for retirement.


Get personalized recommendations based on affordability and your personal financial goals and requirements.


Fully non-obligatory and no strings attached.

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